Within thirty days of approval an applicant must deliver a South Dakota surplus lines broker bond to the Department of Insurance, and before procuring any surplus lines business in the state. A surplus lines broker is an insurance salesperson who is licensed to place coverage with an insurance company that is not licensed to do business in the state. The South Dakota surplus lines broker bond is a guarantee that the broker will conform to and abide by each and every provision of the insurance laws of the State of South Dakota and any other applicable laws, and will pay to the State of South Dakota any monies coming due. The surety bond must be executed in favor of the State of South Dakota and in the penal sum of two thousand dollars ($2,000). Only corporate surety companies holding a current certificate of authority with the South Dakota Department of Insurance are acceptable as sureties for this bond. The ‘financial guarantee’ portion of the South Dakota surplus lines broker bond obligates the broker to promptly remit the premium taxes pursuant to §§ 58-32-44 and 58-32-45. The surety bond may be canceled by giving thirty days’ prior written notice of the termination to the broker and then filed with the Director. National surety leader, Surety One, Inc., is a specialist in the bonding needs of the insurance services sector. We will issue these surety bonds for ALL experienced surplus lines applicants in every state that requires bonding of managing general agencies, regardless of temporary fluctuations in financial statement condition and/or principal’s credit. We also offer superlative fidelity bond coverages to protect against losses due to employee dishonesty. Visit the surety leader at SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for a South Dakota surplus lines broker bond application or information about any bond product.
